The spokesperson also said the ground floor retail facility and “sympathetic alterations” of the retained facade would “provide an enhanced sense of activity to the pedestrian environment”.

Rene Spoors from Melbourne Heritage Action said preservation and integration of heritage buildings should be the first consideration.

“Over 60 objections to its demolition demonstrate the community does not want the Great Western to go the same way as the Corkman Inn, which went under the wrecking ball last year,” he said.

Mr Spoors acknowledged the council’s previous efforts in retaining unprotected heritage building facades, including the Art Deco facade at 35 City Rd in Southbank.

“Whilst our ideal outcome is always to retain and integrate heritage buildings into new developments, where there is a lack of formal protection, sensible restoration of building facades is to be preferred over demolition,” he said.

The new building replacing the Great Western Hotel on the 325sqm site will have a floor area ratio of 20.6:1, exceeding the 18:1 standard.

In addition to the Great Western Hotel, developer Figtree submitted an application in 2015 to demolish the 1920s neo-Egyptian style Duke of Kent Hotel and its neighbouring buildings at 293-303 LaTrobe St to build a 66-level residential tower.